In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,00
Posted: Wed Jul 06, 2022 6:45 pm
In 2021, the Westgate Construction Company entered into acontract to construct a road for Santa Clara County for$10,000,000. The road was completed in 2023. Information related tothe contract is as follows:
Assume that Westgate Construction’s contract with Santa ClaraCounty does not qualify for revenue recognition over time.Required:1. Calculate the amount of revenue and grossprofit (loss) to be recognized in each of the three years.2-a. In the journal below, complete thenecessary journal entries for the year 2021 (credit "Variousaccounts" for construction costs incurred).2-b. In the journal below, complete thenecessary journal entries for the year 2022 (credit "Variousaccounts" for construction costs incurred).2-c. In the journal below, complete thenecessary journal entries for the year 2023 (credit "Variousaccounts" for construction costs incurred).3. Complete the information required below toprepare a partial balance sheet for 2021 and 2022 showing any itemsrelated to the contract.4. Calculate the amount of revenue and grossprofit (loss) to be recognized in each of the three yearsassuming the following costs incurred and costs to completeinformation.
5. Calculate the amount of revenue and gross profit(loss) to be recognized in each of the three years assumingthe following costs incurred and costs to completeinformation.
Assume that Westgate Construction’s contract with Santa ClaraCounty does not qualify for revenue recognition over time.Required:1. Calculate the amount of revenue and grossprofit (loss) to be recognized in each of the three years.2-a. In the journal below, complete thenecessary journal entries for the year 2021 (credit "Variousaccounts" for construction costs incurred).2-b. In the journal below, complete thenecessary journal entries for the year 2022 (credit "Variousaccounts" for construction costs incurred).2-c. In the journal below, complete thenecessary journal entries for the year 2023 (credit "Variousaccounts" for construction costs incurred).3. Complete the information required below toprepare a partial balance sheet for 2021 and 2022 showing any itemsrelated to the contract.4. Calculate the amount of revenue and grossprofit (loss) to be recognized in each of the three yearsassuming the following costs incurred and costs to completeinformation.
5. Calculate the amount of revenue and gross profit(loss) to be recognized in each of the three years assumingthe following costs incurred and costs to completeinformation.